Valad Property Group has bought an industrial warehouse facility at Tempe for $25 million for its Valad Core Plus Fund.
The property was purchased on a passing yield of 7.3% and has been acquired as a core asset for the fund. The fund is now more than 60% seeded.
The property is a showroom/warehouse building with frontage along the Princes Highway in Tempe, approximately nine kilometres south of the Sydney CBD.
The building has a total area of 13,881 sqm on a 20,400 sqm land parcel, providing an opportunity to re-develop or re-zone the site. It was built in the 1950s and considerably refurbished in 2003.
The building is under the permissible FSR and there is potential to add approximately 7,300 sqm of additional space.
Valad’s chief executive of funds management Paul Notaras said the purchase is a significant investment in one of Sydney’s sought after industrial sectors.
“The property is on the major Princes Highway route between Botany and the City, and in the immediate proximity of Sydney Airport.
“The building is the headquarters of an Australian fashion group and is located in the South Sydney Industrial market which is recognised as an established industrial, bulky goods retail and showroom precinct,” he added.
The property is currently fully leased on a 10 year term which commenced in August 2003. The remaining lease term is seven years.
“We are evaluating other exciting off-market opportunities at present for the Valad Core Plus Fund,” he added.
The selling agent was Eugene Evgenikos of Colliers International.
By Kathryn O’Meara
